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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (29338)	3/7/2013 1:46:06 AM
From: Brian Sullivan	Read Replies (1) \| Respond to of 29622

Gold Fields Limited ( GFI) is a gold miner that holds interests in eight operating mines in South Africa, Peru, Ghana, and Australia. 4 reasons GFI is cheap at $8 a share: The stock is selling at the very bottom of its five year valuation range based on P/E, P/B, P/CF and P/S. GFI is trading for less than 5x forward earnings. It also yields 1.8%. Analysts expect the company to increase revenues at just under 20% in FY2013. The three analysts that cover the stock have a median price target of $12.50 (low target: $10.70 high target: $16.50) The stock is too cheap at just over book value and around 4.5x operating cash flow. Yamana Gold Inc. ( AUY) has a property portfolio that includes seven operating gold mines, including Chapada mine, Jacobina mining complex, and Fazenda Brasileiro mine in Brazil; El Peñón mine and Minera Florida mine in Chile; Gualcamayo mine in Argentina; and Mercedes mine in Mexico 4 reasons why AUY is a long term bargain at $14 a share: The median price target of the 18 analysts that cover the stock is $23 a share, almost 70% above the current price of AUY. The company's cost of production is $500/ounce, much lower than some of their competitors in Africa who are running nearer $800/ounce. Yamana had over $500mm in free cash flow in the third quarter of 2012 alone (The company's market capitalization is around $11B). Analysts project over 25% revenue growth in FY2013 and another 15% sales increase in FY2014. AUY is selling at the bottom of its five year valuation range based on P/S and P/CF. Given those growth expectations, 9x 2014's projected earnings seems cheap. The stock also yields 1.8%. seekingalpha.com